đ¨đ¨Ethereum (ETH) Charts Inverse Head-and-Shoulders Pattern Indicating Potential Bullish Trendđđ
Understanding the Inverse Head-and-Shoulders Pattern
The current pattern is a formation analysts use to predict potential trend reversals. It consists of the left shoulder, which indicates a price drop followed by a minor recovery, the head, which observes a larger dip and subsequent rebound. And the Right Shoulder, which indicates a smaller decline resembling the left shoulder, followed by another recovery.
The patternâs neckline, which connects the highs of the left and right shoulders, acts as the critical breakout point. For Ethereum, the completion of this structure could signal a significant bullish breakout, especially if trading volumes accompany the movement.
Current Observations on Ethereumâs Chart
Ethereumâs recent price movements align closely with the characteristics of the inverse head-and-shoulders formation. Analysts have identified key support and resistance levels corresponding to the patternâs shoulders and neckline.
According to a chart by Mags, the left shoulder occurred around May 2024, with the head forming in September 2024. The right shoulder is developing toward the end of 2024, indicating a potential breakout.
The neckline sits near $4,025, acting as a critical resistance level for confirmation. Historical patterns suggest a breakout above the neckline could drive prices higher, potentially reaching $5,000 or more. At the time of press, Ethereum traded at a price of $3,339.59, reflecting a 4.98% daily decline and a market cap of $402.27 billion.
